The paper "Introducing a New Performance Management System" is an outstanding example of a management literature review. In the 21st century, change is rapidly taking place. As the change takes place, management theorists have proposed new theories to improve management (Ohemeng & Owusu 2011, p. 17). While some theories have been implemented successfully some have received severe resentment from employees and even managers. One of the issues which have gained much resistance the type of remuneration offered by organizations, particularly performance-related pay (Folz, Abdelrazek & Chung 2009, p. 63). In one of the studies in a large, it was established that this form of payment method had caused resistance from employees and line managers due to less familiarity and understanding of the new system.
Also, the objectives of the system were not clearly set while others thought the grading system was not fair. Therefore, this report will critically evaluate problems in the areas of performance management, rewards, involvement and participation, equality, and development and talent management which required to be tackled when reforming the performance management system. Also, this report will explain and justify how the system would better be changed and re-launched. 2.0 Background This case study involves a large company which has over the years has embraced the unitarist culture.
In a nutshell, employees belong to a group and have been remunerated through the standard payment method. However, the management has recently adopted performance-related pay which basically was top be done based on the competency of the employees. This system created a grading system of (A– E), with each grade is linked to performance. For instance, (A) represents the highest performance hence heist payment.
The system was devised and introduced very quickly by the use of an external consulting firm. After two years of adoption, high levels of discontent from staff and some line managers who complained about their role within the system and flaws in the system. Research held that the effectiveness of a performance-related pay system is dependent on an understanding of the system and objectives, level of commitment, employees’ participation, reviewing, collaboration and motivation.
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